Tips on getting STP Phase 2 reporting right  

May 25, 2023

The ATO have seen some mistakes as employers have moved to STP Phase 2 reporting. The most common mistakes include:

  • Pay codes: Make sure you’ve set up your pay codes correctly, and that payments including allowances, paid leave and overtime are listed separately.
  • Continuity of year-to-date (YTD) reporting: If you’ve moved to STP Phase 2 reporting part-way through the financial year, check that you have maintained the YTD amounts you had already reported through STP Phase 1. This includes salary and wages you’ve paid your employees, employment termination payments, pay as you go withholding amounts, and more. This applies unless you used an alternative method for transitioning to STP Phase 2.
  • Employee details: An employee’s name, tax file number and date of birth helps us to match your STP records with your employees. As tax time approaches, now is a good time to make sure these details are accurate and complete.
  • Employment basis: Remember, you need to report accurate information about your employees’ employment basis, such as full time, part time, or casual each time you run your payroll.